Summer 2014

Welcome to the summer edition of our company newsletter,

The CFM Distinction. We have changed the format to be more mobile friendly. We hope you like it, please keep reading!

*** NEW REFERRAL PROGRAM ***
Word of mouth has always been our most successful marketing tool. We would like to reward the efforts of our clients who refer other Associations to CFM. If your referral results in a signed contract, we will write a check to your Association for the first month’s contracted amount! Spread the word and everyone benefits!

Our local chapter of CAI is hosting 3 Advanced Essentials courses for board members. Although one has already passed, take advantage of one or both of the remaining classes… and if you are new to CAI the class is free!
Click here for more information.

With Gratitude,
Linnea & Stacie

Underfunded Community Associations

The DRE (now the BRE) issued a consumer warning 2 years ago about the growing number of associations that do not have sufficient funds or reserves to adequately maintain their common areas. In large part this was due to the foreclosure crisis and resulting lack of funds available to Community Associations. One reserve study company we work with provided a statistic based on over 30,000 completed reserve studies stating 70% were underfunded, with 30% of those cases being severely underfunded.

We are now seeing boards exploring their options for recovery including the use of special assessments, bank loans, and increases to assessments during the budget process. Boards need to be aware of their financial position and be prepared to make the necessary decisions based on the advice of the reserve study preparer and the budget preparer. The negative effects of an underfunded community association may include declining property values, deferred maintenance, and unexpected expenses for current and future owners.

Keeping you up to date with information such as this is a reminder why you have chosen CFM as your financial management team. CFM is the only accredited financial management firm in California. We appreciate the opportunity to serve your Association!

What are people saying about CFM?

We just got the year-end financials and cumulative general ledger (from CFM). After 10+ years of having to work with the documents and general ledgers that they (prior management) produced, I have finally seen financials that are pleasing to the eye, and look like everything all fits together. What a difference a year makes and thank you.

The Franklin Award

The Franklin Award is a company reward of a $100 bill given to one employee per quarter in recognition of an outstanding achievement or extraordinary task completion. They can be nominated by their fellow employees, by a homeowner, board member, or colleague. The Franklin Award winner for Summer 2014 is Candy Cahill, Accounts Payable Specialist. Candy was nominated by her co-workers for her excellent work product and advocacy for her clients. Well done Candy!